Most contractors know almost everything about the local markets where they usually perform. But for scaling up your business, it is better to find out more about the situation in the construction sector worldwide. The geolocation factor matters if you are going to build a continental or even global corporation that makes a specialty out of building.
The most progressive companies prefer to keep track of the latest trends and innovations in the niche. That is why most contractors are focused on automation and digitization of their corporate ecosystems through tech solutions like project bidding software for efficient estimating and budget planning in the pre-construction phase or BIM systems for AI-based modeling and design.
But reviewing and analyzing construction markets is also very important. This way you can understand which kind of building directions are developed in this or that region, continent, country, etc. You can tailor your strategy according to the goals and desires:
- To become a pioneer company in North America or Asia with new approaches to infrastructure construction.
- To become a well-known firm that makes an emphasis on on-trend solutions and digitization (using AI-based tools, software for building estimation, etc.).
- To become the first contractor who understands the most common local pains and can solve them with the help of construction.
- To scale up as the leading contractor with green building specialization.
- To find competent subcontractors for larger coverage in the nearby regions.
- To get more real-estate investments from local authorities, etc.
Your business goals can vary. But the main idea is the same – to undertake analytical research of the construction markets in the world regarding the geographical position of each market.
North America Construction Market Review
The residential construction sector is ever-growing in the USA. It can be explained by lockdown restrictions and home-based offices that became popular in the United States. The commercial construction is sleeping now. But it is expected that it will be restored in 2023-2025 if no pandemic restrictions and quarantines take place.
The infrastructure building in North America is rising. There are many reconstruction tenders planned and in work. Numerous highways, bridges, and tunnels are going to be rebuilt. Canada is in second place in the context of construction sector development (after the USA). Here, many contractors are focused on digitization and automation of the building processes and workflow in general.
Construction Market Review of China
This is a country with an ever-growing infrastructure construction sector. But investments in the non-residential building and real estate rose in 2022. That is why a rising number of tenders are expected to cover commercial and residential construction projects. The most popular orders invested by the local authorities and Chinese governments are educational centers, retail, hotels, hospitals, and entertainment objects.
Construction Market Review of India
This country demonstrates the extremely high speed of residential construction. There have been many houses and blocks of flats already built. And numerous objects are expected to be constructed up to 2030. Additionally, India has a huge infrastructure that needs to be covered with the help of the ever-growing construction sector. There is a lack of competent specialists for utility works and heavy machinery for building objects of the transportation infrastructure.
European Construction Market Review
Europe is focused on eco-friendliness, sustainability, and energy efficiency with the help of new-gen construction. That is why on-trend green building and the support of electric vehicles in European countries are on the rise. For example, Germany demonstrates all the preconditions of the rising infrastructure construction sector. The same story is in France. This country is getting ready for the Olympic games in Paris. That is why all the building directions are on the rise (especially modular building and infrastructure construction).
The pandemic restrictions triggered residential building growth in the UK” and Scandinavian countries as well. But these countries continue to invest big money on the government level in their infrastructure development.
Other Construction Markets to Review
Brasilia attracts foreign investors to develop its industrial construction. More and more manufacturers (especially pharmaceutical companies) locate their factories here. Increasing migration flows are observed in Mexico. The highest peak of residential construction growth is expected in 2025.
Chile’s industrial construction is also rising in 2022. More and more copper mining stations and other factories are being built. A speedy pace of development in almost all building directions is demonstrated by Indonesia. The same story is about Malaysia and the Philippines. But these countries of Pacific Asia show leading infrastructure construction growth locally.
To sum up, the next five years will be a real infrastructure construction boom worldwide. South America continues to develop its industrial building opportunities. While Europe is focused on the environmental friendliness of construction and its energy efficiency.